UNITED STATES OF AMERICA —NASDAQ-listed homeowners insurance firm Porch Group, Inc. and its affiliated entity, Porch Insurance Reciprocal Exchange, have entered into a definitive agreement to acquire the managing general agency and insurance carrier operations of Allied Trust. Under the multi-tiered acquisition structure, the Reciprocal will purchase Allied Trust's insurance carrier for an initial base cash price of 55 million US dollars, alongside 50 million US dollars in deferred consideration payable in cash or equity within 12 months post-closing. Concurrently, Porch Group will acquire Allied Trust's managing general agency and captive reinsurance arm for 95 million US dollars, comprising 75 million US dollars in cash and 20 million US dollars in Porch stock. The transaction is projected to close in the first quarter of 2027, subject to customary regulatory approvals and statutory surplus adjustments.
Porch Group, Inc. is a US-based vertical software and property insurance platform providing underwriting, property data, and managing general agency services to homeowners across multiple states. Allied Trust is a regional property and casualty insurance carrier operating primarily in Texas, Louisiana, South Carolina, and North Carolina, with Louisiana accounting for nearly half of its total written premiums in 2025.
The acquisition expands Porch's geographic coverage into Louisiana while adding an estimated 200 million US dollars in Reciprocal Written Premium and approximately 25 million US dollars in Adjusted EBITDA during the first full year of integrated operations following closing. Porch Group will manage the underwriting and policy distribution services in exchange for recurring commissions and operational fees, integrating over a decade of historical claims data from Allied Trust with Porch's proprietary property database to optimize risk pricing and policy underwriting.
This transaction highlights an ongoing structural shift among tech-enabled insurance platforms toward reciprocal exchanges and managing general agency models to optimize statutory capital efficiency. For property insurers, reinsurance providers, and catastrophe-exposed policy markets in the US Gulf Coast and Southeast, consolidating carrier operations enhances underwriting scale and capital allocation resilience against regional weather events.
